Where do I even start with legal protection?

[Jennifer Bowen]

I want to buy my first property. I have a good down payment saved. I have read an exhausting amount of information (including things here on BP) and truth be told, I am still completely confused about whether I should pursue an LLC or liability insurance. I would not even know where to start.

Thoughts? Direction? Help? LOL. 

[Matt Motil]

You're going to get a ton of different replies on this one. Some will tell you to get an LLC for your investing, others will tell you a separate LLC for each property. Others will tell you just buy it in your name with a big insurance policy, others will tell you getting the LLC's and the insurance policy.

Ultimately at the end of the day, do you need an LLC and the insurance? No, not technically, but it's a matter of what will allow you to sleep comfortably at night.

I personally have an LLC for all my rentals and a separate general liability policy on top of the insurance for each property. This provides me the level of comfort that if the normal insurance runs out I have the umbrella policy in place.

It is more difficult to buy in an LLC than in your personal name, but we haven't had too many issues doing it.